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Advisors will need to thoroughly prepare for Form PF reporting
Published on 23 Jul 2012

Form PF, which was implemented as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, will create one of the most daunting and intrusive reporting obligations that has been implemented to date according to Kinetic Partners, a global professional services firm to the asset management, investment banking and brokerage community.

Form PF requires registered investment advisors to periodically provide confidential financial information to the SEC to, among other things, assist the Financial Stability Oversight Council in its assessment of systemic risk in the U.S. financial system. The information could range from the investment strategy of each of a firm’s private funds that it advises, to the private fund’s use of leverage and counterparty exposure.

Advisors will need to understand numerous aspects of the 42-page Form PF and its 10-page glossary of 133 terms.

“Investment advisors must now ensure more than ever that they are constantly monitoring and evaluating their systems, particularly those that have undergone any modifications as this is typically where mistakes and omissions are made with these reporting specifications,” says Jonathan Saxton, Member of Kinetic Partners’ Consulting and Regulatory Compliance practice in New York, which has provided regulatory support in a number of Form PF reporting cases. “Although many firms may feel that they are in line with all of Form PF’s provisions, we recommend seeking outside advice regarding industry best practice, expectations of regulators, and even how to reduce the firm’s compliance risk profile.”


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Product type: Compliance and Regulations

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